B L U E T E A M Family Issues Solution Business Issues Solution 1. No clear succession plan . 1.The management consultancy should carry on implementing a long term succession plan with David. 1. Too many business diversifications (e.g. Garuda Footwear, FDI to China ). 1. There should be more concentration on the core competence of TPF in the future. 2. Lack of communication between the family members. 2. Organise monthly meetings (including family and non family members ) 2. Absence of strong management, human resource department, clear company strategy, policy and culture. 2. The company’s documentation system should be developed and improved in their monthly meetings clarifying its future strategy followed b internal policies. 3. Family is always before business, hiring many relatives 3. In the monthly meetings, members will have to vote for others if they have poor contribution in the business. 3. The company has not negotiated the shipment costs well, as it is based on old contract made by previous managers. 3. TPF should review these contracts and renegotiate prices with suppliers.
G O L D T E A M Family Issues Solution Business Issues Solution 1. Nepotism 1. Family should establish the rules according to which the key top management positions can be undertaken by family members. 1. Absence of strong management team 1. Hire external professional CEOs. 2. Absence of formal rules on valuation of projects investment 2. The Company must have a list of criteria for investments, which should be developed. 2. No clear strategy (loss of market share) and clear mission statement 2. Establish clear strategy and create mission statement according to family values. 3. Relationships within the family 3. Create formal board of directors, and formal procedures for decision making. Hire professional CEO. 3. Selling a business: how to maintain the profits for 3 years and sell at appropriate price 3. they should think of external management.
Y E L L O W T E A M Family Issues Business Issues Overall Solutions 1. Implementation of a HR structure within the company. 2. Place Jimmy on the non-executive board. 3. Make David Chairman of the Board as he seems to understand the business well. 4. Hold events and employ a ‘management by walk around’ approach to enable relationship building. 5. Follow the ‘Professionalization’ advice given by Howarth International. Create a board of directors. - Establish clear dividends for the family members, to decide a clear asset allocation scheme. - Supporting managers should be hired on merits and not family ties. - Hire non-family CEO to run the firm. 1. Internal dispute about the allocation of shares as well as the direction of the company 1. Employee uncertainty 2. Change in family dynamics 2. Financial situation 3. No clear succession plan 3. No clear company structure
Conflicts <ul><li>Gold Team : Cause of Jimmy and Emily’s conflict is because of no Succession plan after Donald’s death. </li></ul><ul><li>V/S </li></ul><ul><li>Blue Team : Conflict between Jimmy & Emily is due to lack of communication between the two which is also caused by David as he underestimated importance of communication between them. </li></ul>
Conflicts <ul><li>Gold Team : agree to sell business, questions “how to sell at a high price & maintain profits for 3 yrs” </li></ul><ul><li>V/S </li></ul><ul><li>Yellow Team : “It would be crazy to sell business under the conditions.” </li></ul>
Conflicts <ul><li>Yellow Team : recommends a ‘HR structure within the company” </li></ul><ul><li>V/S </li></ul><ul><li>Blue Team : recommends “outsourcing of human resource department” </li></ul>
Tai Po and the role of women <ul><li>Dorothy (Jimmy’s wife) was brought into the business despite the family tradition of keeping the wives out. </li></ul><ul><li>This created another set of issues </li></ul><ul><ul><li>She took over admin functions on a part time basis </li></ul></ul><ul><ul><li>She wanted to establish herself as an equal with Emily. </li></ul></ul>